Selling FSBO? Tally Your Closing Costs Without a Realtor

You’re still likely on the hook for the buyer’s agent commission

Historically, the national average agent commission was 5.8%, split between the buyer’s and listing agents at closing. However, the landmark NAR settlement has decoupled agents’ fees, meaning sellers no longer need to cover the buyer’s agent’s commission. Instead, buyers now negotiate fees directly with their own agents.

When selling your home without a Realtor®, you save on the listing agent’s commission. However, if the buyer has an agent, even though it’s not mandatory, you might be compelled to cover their fee (typically 2% to 3% of the sale price) to attract more buyers and expedite the sale.

“A great percentage of buyers are represented by agents. Some sellers attempt to waive the fee and sell directly, but it doesn’t go well. First-time and infrequent buyers are not comfortable with the process without a broker,” Pitts observes.

Closing costs without a Realtor

There’s a laundry list of closing costs a seller is saddled with, regardless of if they sell their home with or without a real estate agent. While closing costs for sellers vary from state to state, they typically average 1% to 3% of the final sale price — that’s excluding any agent commission.

Here’s an overview of the most common closing costs for sellers without a Realtor:

Escrow fees: Typically split between buyer and seller, escrow fees cover property tax payments paid in advance to the lender to hold in escrow. Escrow generally costs 1% to 2% of the final price, so sellers can expect to pay 0.5% to 1% of the sale price in escrow fees.

Title fees: These fees include a title search to verify that the seller owns the property, and without any conflicting liens. Depending on the sale price and the location, title fees can range from $300 to $1,500.

Reconveyance fees: Once your mortgage is paid off, you’ll have to obtain a reconveyance deed to prove it — typical fees for this range from $50 to $65.

Recording fees: After obtaining a reconveyance deed, the seller must have it recorded, usually at the county recorder’s office. Some municipalities include recording fees in the transfer taxes, while others charge them separately. The cost differs from county to county. It could be as low as $15, or it could start at $75 for the first page, with an additional dollar or two for every page after that.

Transfer taxes: These taxes are imposed by the city, county, or state to transfer title and register change ownership of the property. They are either calculated as a percentage of the sales price or as a flat fee. See our state-by-state guide to transfer taxes for a local estimate.

Hold on: Some sellers pay these closing costs too

Depending on your home sale, you may owe additional closing costs, such as the following:

Attorney fees
If you have an attorney represent you at closing, you’ll pay for the attorney fees. An attorney may charge by the hour — $150 to $400, or they may charge a flat fee for outlined services such as preparing closing documents.

“Sometimes closing attorney’s fees are split. But a FSBO seller must pay wire fees,” Pitts says. Sellers are usually responsible for the cost of closing document preparation, as well.

Note that some states require a real estate attorney to be present at closing, whether you have an agent or not.

Seller concessions
Buyers may negotiate a financing concession, in which the seller pays part or all of the buyer’s closing costs. Often, a buyer negotiates for concessions, so they owe less in cash at the time of closing.

“At 3% of the sales price, that’s a substantial amount,” Pitt notes.

Lenders set limits on seller concessions depending on the loan type, whether the home is a primary or secondary residence, and the size of the down payment. For example, the Department of Housing and Urban Development caps seller concessions for FHA loans at 6% of the sale price.

Mortgage pay off
You’ll have to pay off the remainder of the loan on your home. To find out how much you owe, contact your lender or servicer and request your payoff amount. The payoff amount is the total you’ll have to pay to satisfy the terms of your mortgage, including any interest you owe until the day you plan to pay your loan in full.

Holding costs
Expect to cover holding costs or carrying costs between the time you accept an offer and the sale closes (typically 30 to 45 days). During that time, the seller continues to pay the monthly mortgage payment, taxes, insurance, HOA dues, and utility bills.

FSBO fees: You’ll spend some of your 3% commission savings

Sure, as a FSBO seller, you save on the listing agent commission, but there are hidden fees in doing it yourself. Discounting the value of your time, expect to shell out for the following costs that are normally included in an agent’s commission:

Home appraisal
To help set a listing price, FSBO sellers often hire an appraiser to determine the home’s fair market value, based on comparative properties, or “comps.” Expect to pay between $200 and $600 for an appraisal. The national average is around $357, but the actual cost will depend on your home’s size, property type, and location.

MLS listing fee
If you want to get your listing in front of buyers, you need to get it on the multiple listing service (MLS). 88% of sellers in 2023 listed their homes on the MLS.

This platform is the number one listing source and auto-syndicates your property details to the major online listing sites. You can pay a limited-service real estate agent to put the listing up for you or go through a flat-fee MLS listing service.

Professional listing photos
Don’t expect buyers to take your listing seriously if all of the photos were shot on your smartphone. Pay for a professional real estate photographer to take photos and videos. The cost is around $60 to $300 per project.

Digital and physical advertising
You can stick a sign in your yard and place a free ad on Craigslist, but to reach a broader audience of buyers, you’ll need to spend some money. At the very least, you’ll need signs, brochures, some classified ads, and perhaps some paid ads on social media. The low end for marketing runs from $50 to $200. There is no top end, as the sky’s the limit.

Pre-listing home inspection
By presenting the buyer with a completed pre-listing inspection report form, you can allay some concerns and save time on the sale process. For an average cost of just over $343, you can have your home inspected.

Property survey
For the same reasons mentioned above, a property survey can grease the wheels of a sale. The cost of a survey depends on the size of your property and its location, but Angi puts it at $800 to $5,500

Open house expenses
The price of an open house varies widely, depending on where you live and how elaborate you want to go. Will you offer food and drinks? Will there be staging, decorations, or other attractions? According to the NAR, only 3% of buyers visit open houses, but it’s worth the effort to help promote your home.

Staging
Whether you hire a professional stager or add select pieces, staging can enhance the appeal of your home. Professional stagers are pricey, charging $1,500 to $4,000 for just a few rooms. You may have to commit to multiple months of furniture rental if your home doesn’t sell quickly.

Learn by example: The sum of closing costs without a Realtor®

To give you a better picture of FSBO closing costs, here’s an example, based on a house that sold for $400,000 (close to the median national price):

Sale price: $400,000

Buyer’s agent commission at 3%: $12,000

Escrow (1%): $4,000

Title search: $300-$600

Title insurance: $1,000

Home inspection: $300-$500

Appraisal: $300-$400

Property survey: $800-$1,000

Transfer taxes: $75

Recording fees: $50

That’s $18,825 to $19,625 for just the necessary paperwork. Add in repairs, seller concessions, attorney fees, and FSBO expenses normally covered in a listing agent’s commission, and the total closing costs reach well above $20,000.

Using HomeLight’s Net Proceeds Calculator and keying in a particular location, say, Santa Monica Boulevard, Beverly Hills California, the closing cost amounts to $43,200 for a home sold for $400,000.

FSBO: Fizzle or sizzle?

For first-time and busy sellers, the time and responsibilities FSBO demands are usually not worth pocketing some of the 3% commission saved without a listing agent.

If your reason for considering a FSBO sale is monetary, consider the fact that FSBO homes sold for a median price of $380,000, notably lower than the $435,000 median price of agent-assisted sales.

HomeLight’s analysis of transaction data supports this, revealing that the top 5% of real estate agents help sellers sell their homes for 10% more than the average.

Ultimately, the decision to FSBO or sell with a real estate agent is up to you. Perhaps you’re a diehard DIYer or a budding agent yourself. Just know what costs you’re on the hook for as a FSBO seller before you commit.

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